TOYO (NASDAQ:TOYO) reported sharply higher revenue in fiscal 2025 as the company expanded its solar cell and module manufacturing footprint and ramped production at newer facilities, while management also outlined shipment and profit targets for 2026 and discussed plans to increase investor engagement.
Management highlights: Ethiopia ramp, Houston modules, and brand integration
Chief Executive Officer Takahiko Onozuka described 2025 as “the year of decisive action” for the company, saying TOYO “doubled our operational scale” while navigating a volatile trade environment. Onozuka said the company’s strategy centered on strengthening its position as a vertically integrated provider and shifting production toward “high demand and compliant manufacturing hubs.”
During fiscal 2025, Onozuka said TOYO shipped 2.3 GW of solar cells from Ethiopia to U.S. end customers and dispatched an additional 1.9 GW of solar cells from its Vietnam facility to international markets. Looking ahead, he said the company is “on track to deliver a full 4 GW of solar cells” from Ethiopia in 2026.
On the module side, Onozuka said TOYO launched commercial operations at its new 1 GW module facility in Houston in the fourth quarter of 2025. The company delivered 249 megawatts (MW) of modules in 2025, including both “American-made modules and those supplied by our OEM facility overseas,” he said. Onozuka added that TOYO intends to scale production in 2026 and invest to expand Houston capacity to 2 GW by 2026.
Onozuka also highlighted a September 2025 transaction in which TOYO acquired the BridgeSun brand from a sister company. He described the move as a way to streamline and unify operations by bringing the VSUN brand under TOYO’s umbrella. The company has migrated the VSUN sales and marketing team, intellectual property, brands, and certifications to TOYO, and is in the process of migrating existing customers to become direct TOYO customers as qualifications are completed. Onozuka said the acquisition was completed without dilution to shareholders, while production assets remain with VSUN.
2026 roadmap: shipment guidance and U.S. expansion plans
Newly appointed Chief Strategy Officer Rhone Resch, whose appointment was announced the morning of the call, said TOYO’s 2025 performance validated its strategy and execution, particularly in a year he characterized as challenging for the broader solar industry.
Resch provided initial shipment guidance for 2026, stating TOYO expects:
- Solar cell shipments of 5.5 GW to 5.8 GW
- Solar module shipments of 1.0 GW to 1.3 GW
Resch said the outlook is supported by a “robust order book” and a domestic policy environment that prioritizes “high-efficiency, traceable technology.” Operationally, he said the company’s focus is maximizing current infrastructure, including running the Ethiopia facility at full nameplate capacity and ramping the Houston module facility’s initial 1 GW to meet localized demand.
Resch added that TOYO plans to add another 1 GW of module capacity in Houston during 2026, bringing total U.S. module capacity to 2 GW. He also said the “next phase” of U.S. expansion involves building domestic cell production, noting the company is in the final stages of planning and expects to disclose additional details on its operational roadmap in the near future.
Financially, Resch said TOYO is targeting 2026 adjusted net income of approximately $90 million to $100 million, even as it increases “very substantial investments” in R&D and technology. He said those costs are intended to support a technology leadership position in the U.S. and build an intellectual property foundation for the next generation of American solar energy.
Full-year 2025 financial results
Chief Financial Officer Raymond Chung reported fiscal 2025 revenue of $427 million, up 142% year over year. Chung attributed the increase primarily to a $241 million rise in solar cell sales and a $7.6 million increase in module sales.
Cost of revenue rose to $331 million from $155 million in the prior year, an increase of 113%, which Chung said grew more slowly than revenue due to a higher mix of sales to U.S. end customers with stronger average selling prices. Gross profit climbed 340% to $96.3 million from $21.9 million, while gross margin expanded to 22.5% from 12.4%.
Operating expenses increased to $37.3 million from $13 million in 2024. Selling and marketing expense rose to $5.9 million from $1.6 million, which Chung attributed primarily to higher commissions aligned with revenue growth. General and administrative expense increased to $31.4 million from $11.4 million, largely due to $13.7 million of non-cash share-based compensation issued to management, directors, and consultants. Chung said administrative costs also rose as the company scaled its workforce and infrastructure to support activation of its Ethiopia and Texas plants.
EBITDA was $95.8 million in 2025, up from $68.2 million in 2024. Non-GAAP adjusted EBITDA, excluding share-based compensation and changes in the fair value of contingent consideration payable to earn-out shares, was $110.8 million, up from $33.8 million a year earlier.
GAAP net income was $37.2 million, compared with $40.5 million in 2024. Adjusted net income was $52.2 million, compared to $6 million in 2024. Earnings per share (basic and diluted) were $0.98, down from $1.09, while adjusted EPS was $1.48 compared to $0.20 in the prior year.
As of Dec. 31, 2025, Chung said TOYO had $58.9 million in cash and restricted cash, up from $17.2 million at the end of 2024. The company generated $133 million in operating cash flow during 2025 and invested $92 million of capital expenditures across the Ethiopia cell facility and U.S. module operations. Chung reiterated the company’s 2026 adjusted net income expectation of approximately $90 million to $100 million.
Q&A: margins, U.S. credits, and quarterly reporting
During the question-and-answer session, H.C. Wainwright’s Amit Dayal asked about how to think about gross margins as the U.S. share of revenue grows. Management said the company is not currently providing gross margin guidance, but noted that with Ethiopia operating at full capacity and the U.S. factory online, TOYO believes it can “continue to achieve very competitive margins in the market.”
President Simon Shi added that for 2025 the company achieved a “cross-border average gross margin around 25%” and said TOYO hopes to at least maintain that level going forward. Shi also said figures communicated in historical financials and 2026 guidance are “pre the 45X,” noting that the $0.07 45X amount “supposed to receive for our Houston manufacturer” was not included in guidance or historical financials.
Asked about potential U.S. credits in 2026, Shi said the company is being cautious in providing guidance for Houston production. He said TOYO is currently running 1 GW of capacity and is targeting 60% to 70% utilization. Regarding the additional 1 GW planned for Houston, Shi said the company hopes to see pilot production beginning in the third quarter, or at the latest the fourth quarter of 2026, but emphasized that this incremental capacity is not included in current guidance.
Dayal also asked about the company’s reporting cadence. Shi said TOYO plans to report quarterly starting this year, and expects to release first-quarter results in May.
In closing remarks, Investor Relations representative Crocker Coulson said the team is “very excited about what’s ahead for TOYO in 2026,” and noted Resch will be based primarily in the U.S. Coulson added that the company plans to be more available to meet with investors going forward.
About TOYO (NASDAQ:TOYO)
TOYO Co Ltd. engages in the design, manufacture, and sale of solar cells and modules. It is involved in integrating the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and potentially other stages of the solar power supply chain. The company was founded on November 8, 2022 and is headquartered in Tokyo, Japan.
